Caterpillar Piotroski F Score

CAT
 Stock
  

USD 236.13  0.44  0.19%   

This module uses fundamental data of Caterpillar to approximate its Piotroski F score. Caterpillar F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Caterpillar. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Caterpillar financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Continue to Caterpillar Altman Z Score, Caterpillar Correlation, Caterpillar Valuation, as well as analyze Caterpillar Alpha and Beta and Caterpillar Hype Analysis.
  
Caterpillar Debt Current is comparatively stable at the moment as compared to the past year. Caterpillar reported Debt Current of 11.76 Billion in 2021. Issuance Repayment of Debt Securities is likely to gain to about 765.2 M in 2022, whereas Debt to Equity Ratio is likely to drop 2.25 in 2022. Caterpillar Return on Investment is comparatively stable at the moment as compared to the past year. Caterpillar reported Return on Investment of 13.74 in 2021. Revenue to Assets is likely to gain to 0.69 in 2022, whereas Cash Flow Per Share is likely to drop 11.82 in 2022.
At this time, it appears that Caterpillar's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
5.0
Piotroski F Score - Healthy
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeDecreaseFocus
7
Long Term Debt Over Assets ChangeLower LeverageFocus
8
Change In Outstending SharesIncreaseFocus
9
Change in Gross MarginNo ChangeFocus

Caterpillar Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Caterpillar is to make sure Caterpillar is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Caterpillar's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Caterpillar's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares Diluted642 M548.5 M
Fairly Up
Decreasing
Slightly volatile
Weighted Average Shares633.8 M544 M
Fairly Up
Decreasing
Slightly volatile
Return on Average Assets8.698.055
Significantly Up
Increasing
Stable
Net Cash Flow from Operations6.6 B7.2 B
Significantly Down
Increasing
Very volatile
Current Liabilities27.1 B29.8 B
Moderately Down
Increasing
Stable
Total Liabilities62 B66.3 B
Notably Down
Decreasing
Very volatile
Gross Margin28.2830.327
Significantly Down
Increasing
Slightly volatile
Total Debt35.6 B37.8 B
Notably Down
Increasing
Very volatile
Asset Turnover0.710.6327
Moderately Up
Decreasing
Slightly volatile
Current Assets38.8 B43.5 B
Fairly Down
Increasing
Slightly volatile
Total Assets77 B82.8 B
Significantly Down
Increasing
Very volatile

Caterpillar F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Caterpillar's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Caterpillar in a much-optimized way.

About Caterpillar Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Weighted Average Shares

633.83 Million

Caterpillar Weighted Average Shares is comparatively stable at the moment as compared to the past year. Caterpillar reported Weighted Average Shares of 544 Million in 2021

Caterpillar Current Valuation Drivers

We derive many important indicators used in calculating different scores of Caterpillar from analyzing Caterpillar's financial statements. These drivers represent accounts that assess Caterpillar's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Caterpillar's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee7.66 K59.11 K59.56 K30.73 K60.25 K65.01 K
Revenue Per Employee462.01 K526.17 K525.9 K427.89 K473.27 K446.13 K
Average Assets77.9 B78.43 B78.59 B76.88 B81.5 B76.81 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA7.81 B11.38 B11.24 B7.22 B11.2 B9.64 B
Earnings Before Interest Taxes and Depreciation Amortization USD7.5 B11.02 B10.84 B6.95 B11.07 B10.8 B
Earnings before Tax4.09 B7.84 B7.84 B4 B8.23 B7.42 B
Average Equity14.3 B15.05 B14.99 B14.6 B16.68 B15.46 B
Enterprise Value120.08 B102.75 B111.62 B127.69 B139.17 B132.18 B
Free Cash Flow4.53 B4.58 B5.4 B4.98 B5.99 B5.84 B
Invested Capital68.34 B70.87 B73.44 B72.72 B74.11 B70.3 B
Invested Capital Average69.58 B70.5 B72.7 B72.73 B73.9 B70.24 B
Market Capitalization93.75 B74.98 B81.62 B98.88 B111.83 B100.19 B
Tangible Asset Value68.65 B70.39 B70.69 B70.62 B75.43 B69.86 B
Working Capital9.31 B10.38 B12.57 B13.75 B13.61 B13.32 B

Caterpillar ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Caterpillar's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Caterpillar's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Caterpillar Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Caterpillar's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Caterpillar using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Caterpillar based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company was founded in 1925 and is headquartered in Deerfield, Illinois. Caterpillar operates under Farm Heavy Construction Machinery classification in the United States and is traded on New York Stock Exchange. It employs 107700 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Caterpillar without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Caterpillar

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Caterpillar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Caterpillar will appreciate offsetting losses from the drop in the long position's value.

Moving together with Caterpillar

+0.92REVGRev Group Fiscal Year End 21st of December 2022 PairCorr
+0.78ABMABM Industries Incor Fiscal Year End 21st of December 2022 PairCorr

Moving against Caterpillar

-0.59NKLANikolaCorp Normal TradingPairCorr
-0.58MESAMesa Air Group Fiscal Year End 8th of December 2022 PairCorr
The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caterpillar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caterpillar to buy it.
The correlation of Caterpillar is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Caterpillar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caterpillar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Caterpillar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Caterpillar Altman Z Score, Caterpillar Correlation, Caterpillar Valuation, as well as analyze Caterpillar Alpha and Beta and Caterpillar Hype Analysis. Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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When running Caterpillar price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.49
Market Capitalization
122.9 B
Quarterly Revenue Growth YOY
0.21
Return On Assets
0.0695
Return On Equity
45.48
The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine Caterpillar value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.